G L O B A L L U X U R Y R E A L E S T A T E R E P O R T2 | Luxury Portfolio InternationalI N T R O D U C T I O NPERSPECTIVES ON THE AFFLUENT CONSUMER & THE LUXURY REAL ESTATE MARKET2016 is an unprecedented time in the world of those that market significant properties. A unique confluence of global events, such as the economic uncertainty presented by Brexit, the flux of the Chinese economy, political unknowns derived from the race for the Presidency in the United States and global threats caused by terrorism or the refugee crisis have resulted in not surprising reports of a softening in the market, particularly in those markets that have recently attracted global buyers, like London, New York, San Francisco, Paris and Hong Kong.And yet, as outlined in the following pages, the prevalence of personal wealth reflects a healthy environment, based on the YouGov Affluent Perspective. Todays affluent are cautious, but optimistic. The highest-net-worth among us feel good about their lives, are confident about their decisions and have a very strong intent to purchase real estate. This is a group of successful individuals who know what they want, are driven by passions, are interested in keeping their families and loved ones safe, and embrace the latest innovations, particularly in technologyand sustainability.With confidence and innovative thinking comes a consumer who increasingly prefers strong, independent brands. From the perspective of Luxury Portfolio International, a collection of market- leading, local, independent real estate brands in the world, thats terrific news for the coming months and years.Real estate is a passion for high-net-worth individuals and is often seen as the ultimate sign of success. It is a lifestyle choice, a discretionary purchase that can be an investment in, and reward for all their hard work.At Luxury Portfolio, we constantly strive to better understand the drivers and motivations of those with significant means. The following report is a terrific snapshot of just some of our latest findings, in concert with our research partner, YouGov. Enjoy.PAUL BOOMSMA President Luxury Portfolio InternationalSTEPHANIE ANTON Executive Vice President Luxury Portfolio International 2016, YouGov. All rights reserved.Luxury Portfolio International | 3W E A L T H O N T H E R I S EPersonal wealth has grown substantially all over the world since the official end of the recession in 2010. The latest statistics from the wealth monitoring at Credit Suisse suggest a rapid growth not only of the wealthy, but also the ultra-wealthy. Consider the statistics, below:M O R E T H A N D O U B L I N G O F T H E W E A L T H P O P U L A T I O N IN 5 Y E A R S $10M+ NET WORTH POPULATION CHANGE BETWEEN 2010 AND 201560% IS THE UNITED STATESThe ranks of the ultra-wealthy, at $50 million or more in net worth, have also soared to new heights. Worldwide there are an estimated 123,838 individuals at this prestigious level, an increase of 53% in just five years. Whats more, half of the worlds ultra-wealthy live in North America, which is adding to the count more than twice as fast as Asia-Pacific (58% versus 22% growth 20102015) and still faster than Europe (39% growth between 20102015). The concentration of wealth continues to remain in the West, despite the strong inroads made by Eastern economies.As more individuals enter into the world of wealth, we decided to take a closer look at the Global Top 1%, or in this case, those with a minimum of USD 3 million in assets (excluding primary residence). Here is what we found. 2016, YouGov. All rights reserved.NORTH AMERICA + 1 1 8 % TO 869,803EUROPE + 3 1 % TO 318,497ASIA-PACIFIC + 1 0 % TO 152,167WORLDWIDE + 7 2 % TO 1,461,560NORTH AMERICAEUROPEASIA-PACIFICSource: Credit Suisse Global Wealth Report, 2015.4 | Luxury Portfolio International 2016, YouGov. All rights reserved.A C O N F I D E N T C O N S U M E RWealthy people around the world speak the same language, are trained to the same standards, and as a result evaluate how well they are living life in the same way.The similarities continue on from the inside out. Wealthy consumers are on a search for worth, which translates to quality, craftsmanship and service, in the products, services and experiences they take part in. The desire for worth helps consumers justify price, whether they want to pay more for the best, or pay less and feel like theyve won the deal. Regardless of their purchase mindset, the wealthy demand victory through the process. Consider:The result is a consumer who is not impressed with “off the shelf” solutions to their needs. The companies they work with are held to a similarly high standard, and those expectations are increasingly being met by independent providers.“Success is about being fulfilled with the work I do, not the money I earn“P eople think of m e as having very high standards“I invest my time in my personal develop